Toronto-based FinTech startup Borrowell has laid off 15 employees, representing 20 percent of its 75-person workforce, as a direct result of the COVID-19 pandemic's economic impact. CEO Andrew Graham cited that while consumer financial concerns have increased, many partner financial institutions have reduced new business, directly affecting Borrowell's referral-based model. The layoffs, deemed a difficult but necessary decision for long-term stability, occurred amidst broader industry challenges. Despite government wage subsidy programs, Graham and other tech leaders argue the current criteria exclude fast-growing startups like Borrowell, prompting calls for urgent policy changes to support the innovation sector during this crisis.
